PT Mega Manunggal Property Tbk
September 2015
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PT Mega Manunggal Property Tbk
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Agenda presentation
PT Mega Manunggal Property Tbk
Section
Pages
1
Brief profile of MMP
1
2
Review of MMP business
4
3
Investment thesis
9
4
Industry
15
5
Financial review
21
6
Growth Strategy
27
7
Summary of investment consideration
31
8
Appendix 1 Financial Information
32
PT Mega Manunggal Property Tbk
Section 1
Brief Profile of MMP
Brief profile of PT Mega Manunggal Property Tbk
PT Mega Manunggal Property Tbk
Company background

PT Mega Manunggal Property Tbk. (“MMP” or “Company”)
was established in 2010.

MMP develops, owns and operates logistic properties, with
a focus in warehousing that specifically meet international
standards. Development of these warehouses is intended to
meet multinational and domestic companies’ needs for
modern logistic properties.


MMP’s shareholder structure (Post IPO)
PT Mega Mandiri
Properti
Public
30%
70%
Currently, MMP has successfully developed and owned 4
(four) high quality logistic properties with a total Net
Leasable Area (NLA) of 163.757 m2 including:

Univeler Mega DC

Li & Fung

Intirub Business Park I & II

Selayar
MMP plans to acquires land and develop logistic properties
in a bid to expand its portfolio.
Hungkang
Sutedja
Unilever
Mega DC
Li & Fung
PT Mega Manunggal
Property Tbk
Selayar
99,5%
PT Intirub
0,5%
Intirub Business
Park I & II
1
Company’s management
PT Mega Manunggal Property Tbk
Board of
commissioners
Hungkang Sutedja
Tri Ramadi
President Commissioner
Vice President
Commissioner
Nicholas The
Commissioner
Fernandus Chamsi
Bonny Budi Setiawan
Johny Johan
President Director
Independent Director
Director
Abdul Rahim Tahir
Independent
Commissioner
Debbie Ana Sumargo
Independent
Commissioner
Board of directors
Supporting good corporate governance practices
Audit Committee
Nomination and Remuneration Committee Internal Audit
Corporate Secretary
Head
: Abdul Rahim Tahir
Head
: Debbie Ana Sumargo
Khrisna Daswara
Member
: Drs. Herbudianto Ak.
Member
: Hungkang Sutedja
Member
: Debbie Ana Sumargo
Member
: Tri Ramadi
Head
: Thelly Krishanty
2
Track record of MMP
PT Mega Manunggal Property Tbk
August 2010
March 2011
April 2012
October 2012
June 2014
Company’s Strategy:
MMP was
established
Construction of
Intirub Business
Park I
Construction of
Unilever Mega
DC completed
Construction of
Intirub Business
Park II began
Construction of
Intirub Business
Park II completed
 Acquiring industrial land in
Jabodetabek and large cities
NLA: 90.288 m2
 Constructing logistic properties with
international standard
NLA: 18.326 m2
 Obtaining long term contract from
high quality tenant
8-2010
2010
10-2010
3-2011
2011
12-2011
4-2012
2012
10-2012
5-20132013
5-20131-2014
6-2014
2014
12-2014
2-2015
2015
2018
2018
October 2010
December 2011
June 2012
May 2013
January 2014
December 2014
End of 2014:
June 2015
Construction of
Unilever Mega
DC began
DHL began its
operational in
Intirub Business
Park I
Construction of Li
& Fung began
and MMP
acquired land
area of 79.654 m2
Construction of Li
& Fung
completed
Construction of
Selayar
Warehouse began
Construction of
Selayar
completed
Stable operational
activities
Initial Public
Offering
(IPO)
NLA: 27.911 m2
NLA: 21.612
m2
NLA: 5.620
m2
 4 logistic properties
 Total NLA 163.757
m2
 Occupancy rate
94%
 Long term contract
with average
remaining contract
of 6.5 years
3
PT Mega Manunggal Property Tbk
Section 2
Review of MMP Business
Location MMP’s logistic properties
PT Mega Manunggal Property Tbk
Access to Merak
port and
Lampung
(main
transportation
route to
Sumatera)
Tanjung
Priok
Port
Soekarno
Hatta
Airport
Marunda
Center
Jakarta
Industrial
Estate
Heavy
industry and
petrochemica
l estates
Industrial estates
expansion areas
Growing industrial
estates
(automotive,
consumer, light and
medium industries)
Modern
Bekasi
MM2100
Halim
Intirub
Business
Park
Unilever
Li & Fung
Selayar
Jababeka
Lippo
Cikarang
Intirub Business
Park
Unilever Mega DC
Li & Fung
Selayar
Distance to Jakarta
0
35
35
35
Distance to Tanjung Priok port
22
48
48
48
Distance to International Airport
39
68
68
68
(in km)
Access to Bandung
and Cikampek
(main transportation
route of goods)
Kota Deltamas
4
Logistic property profile – Unilever Mega DC
PT Mega Manunggal Property Tbk
Location
Land area
Gross floor area
NLA
Lease period
Operator
Floor capacity
Ceiling height
: MM2100 industrial estates, West
Cikarang, Bekasi
: 194.297 m2
: 156.462 m2
: 90.288 m2
: 10 years, with an option to extend
another 10 years
: PT Linfox Logistics Indonesia
: 6 ton per m2
: 12 m (center 17 m)
Specification:
- Super flat floors (FF; Floor Flatness);
- Double deep pallet racking system;
- Heat shield;
- Parking area up to 104 truck;
- 85 loading doors;
- 8 loading dock levelers;
- Sprinkler on each rack, with immediate response;
- Fire extinguisher with standard of ULFM;
- Rental that include racking, sprinkler and office.
5
Logistic property profile – Li & Fung
PT Mega Manunggal Property Tbk
Location
Land area
Gross floor area
NLA
Lease period
Floor capacity
Ceiling height
Tenant
: M2100 industrial estates, West Cikarang,
Bekasi
: 34.637 m2
: 21.702 m2
: 21.612 m2
: 5 years, with option to extend for another 5
years
: 6 ton per m2
: 11 m (center 12,5 m)
: PT LF Services Indonesia (part of Li &
Fung Ltd. Group) / Fonterra & ARK / Ultra
Jaya
Specification:
- Super flat floor;
- 38 loading doors with tight sealing to keep hygiene;
- Heat shield;
- 19 loading dock levelers
6
Logistic property profile – Intirub Busines Park I & II
PT Mega Manunggal Property Tbk
Intirub Business Park I
Location
Land area
Gross floor area
NLA
Floor capacity
Ceiling height
Warehouse specification
Special specifications
Tenants
Intirub Business Park II
Location
Land area
Gross floor area
NLA
Floor capacity
Ceiling height
Warehouse specification
Special specifications
Tenants
:
:
:
:
:
:
:
Halim, East Jakarta
28.195 m2
30.086 m2 (warehouse) + 5.455 m2 (office)
23.272 m2 (warehouse) + 4.639 m2 (office)
up to 4,5 ton per m2
10 m
warehouse with semi basement, 3 floor
office and parking area
: 5 loading dock levelers
: DHL, ARK/Ingram, Yokogawa, aCommerce
(warehouse), Bank BNI46, DHL,
Mahadasha, Scan Global (office)
:
:
:
:
:
:
:
Halim, East Jakarta
32.380 m2
23.219 m2 (warehouse) + 5.696 m2 (office)
13.680 m2 (warehouse) + 4.646 m2 (office)
up to 4,5 ton per m2
9m
warehouse with semi basement, 3 floor
office and parking area
: 10 loading dock levelers
: Grundfos, DHL, ARK, MHE-Demag
(warehouse), Grundfos, Deraya, MHEDemag (office)
7
Property logistic profile – Selayar
PT Mega Manunggal Property Tbk
Location
Land area
Gross floor area
NLA
Floor capacity
Ceiling height
Special specifications
: MM2100 industrial estates, West
Cikarang, Bekasi
: 9.164 m2
: 5.742 m2
: 5.620 m2
: 4 ton per m2
: 9 m (center 13 m)
: 6 loading doors with 2 loading dock
levelers
8
PT Mega Manunggal Property Tbk
Section 3
Investment Thesis
Provider of high quality and international standard logistic properties
PT Mega Manunggal Property Tbk
Typical specification from high-performance logistic
properties
Floor capacity 1,5 ton/m2
or more to accommodate
use of forklifts
Ceiling height of 5,0 m or
more to provide space for
cargo lifting using
forklifts
Warehouse specification
MMP’s existing logistic properties surpass main criteria and specification for modern logistic
properties.
Distance between
pillar 8,0 m or more
to increase
efficiency
Floor
capacity
Ceiling
height
3
Standard
warehouse
Unilever
Mega DC
Li & Fung
Intirub
Business Park
Selayar
Lazada
≤ 1,5 ton/m2
s/d 6 ton/m2
s/d 6 ton/m2
s/d 4/4,5 ton/m2
s/d 4 ton/m2
s/d 4 ton/m2
≤ 5,0 m
12 m
(center 17 m)
11 m
(center 12,5 m)
10 m (Tahap I)
9 m (Tahap II)
9m
12 m
(center 13m) (center 16 m)
3
2
3
1
2
1
Office space
Better working
environment for
employees
Dock shelters
Car Berths
To prevent and protect from wind,
rain, moisture, dust, etc., while
handling cargos.
Number of facilities that
allow trucks to
loading/unloading efficiently
Note: Not all MMP’s logistic properties are equipped with the above specifications
Distance
between
pillar
Level
Flooring
Stage 1:
Basement: 8 x 8 m
Ground Floor
8 x 30 m
≤ 8,0m
Main area:
18 x 36 m
Area aerosol:
9 x 28,5 m
27 x 18 m;
30 x 18 m
single
Single (multi
racking)
Single (multi
racking)
standar
Super flat
Super flat
30 x 12m
24 x 18 and
32 x 18
Multi
Single
Single (multi
racking
Flat
Flat
Flat
Stage 2:
Basement:
6 x 15 m
Ground Floor
12 x 30m
9
Proven track record in developing and delivering logistic properties
PT Mega Manunggal Property Tbk
MMP has proven track record in acquiring land and developing logistic properties, which generally takes around 9 to 18 months to complete
construction.
Growth in NLA in the past 3 years
CAGR 17,7%
Consistency in maintaining occupancy rate above 90%
Occupancy rate
(m2)
163.911
163.757
139.811
90%
118.199
97%
94%
97%
159.549
154.623
135.311
105.657
2012
Built-to-suit
Project
Unilever Mega DC
Li & Fung
2013
Unilever
2014
IBP I
L&F
IBP II
2012
9M15
2013
Unilever
Selayar
2014
IBP I
L&F
IBP II
9M15
Selayar
Land Area
Gross Floor Area
Net Leasable Area
Date of Contract
Months to develop
Delivery date
194.297 m2
156.462 m2
90.288 m2
15 December 2010
16 months
25 April 2012
m2
m2
m2
9 July 2012
11 months
15 May2013
34.637
21.702
21.612
Standard Warehouse Building
Project
Land Area
Gross Floor Area
Net Leasable Area
Months to develop
Intirub Business Park I
28.195 m2
30.086 m2 (warehouse) + 5.455 m2 (office)
23.397 m2 (warehouse) + 4.639 m2 (office)
9 months
Intirub Business Park II
32.380 m2
23.219 m2 (warehouse) + 5.696 m2 (office)
13.709 m2 (warehouse) + 4.646 m2 (office)
18 months
Selayar
9.164 m2
5.742 m2
5.620 m2
12 months
10
Solid business model
PT Mega Manunggal Property Tbk
Competitive advantages
 MMP focus towards developing warehouse with size of
5.000 to 100.000
m 2.
Operating assets that provide recurring and stable cash flow
Unilever Mega DC
(operated by Linfox)
Li & Fung
 Built-to-suit tenants that currently contribute around 70%of
total revenues minimizes risks of tenants exiting.
 Stable operating cash flow with greater upside potential
from improving economy cycle, while at the same time
sheltered against downside risks from economy slowing.
Rental revenue
2014:
Rp 82,9 bn
Rental revenue
2014:
Rp 15,9 bn
 High operating leverage with high EBITDA margin.
Intirub Business Park
Selayar
 Improve tenants’ efficiency and productivities through
centralization of warehouses.
Rental revenue
2014:
Rp 42,8 bn
Construction completed in
Desember 2014
11
MMP’s logistic properties are located strategically in Indonesia
PT Mega Manunggal Property Tbk
 Near centre of production and consumption
 Easy access towards transportation network
 Easy supply of labour workforce and convenient transportation for employees
 Provide benefits to tenants in reducing logistic costs
Located in Java Island that is the centre for industries with the largest industrial estates in Indonesia
% Industrial estate areas
% Industrial estates that are
developed
Kaltim Bangka Belitung
5%
Sulteng 3%
Sulsel 4%
2%
Sumbar
1%
Sumut
4%
Sulsel
Sumbar 2%
0%
Sumut
5%
Riau & Kep. Riau
8%
Jatim
8%
Jakarta,
Banten &
Jabar
57%
Riau & Kep. Riau
9%
Kaltim
1%
Jateng
5%
Jakarta,
Banten &
Jabar
71%
Jatim
9%
Jateng
6%
Sumber: Himpunan Kawasan Industri
12
MMP’s logistic properties are located closer to consumers
PT Mega Manunggal Property Tbk
Located in Java Island that is the centre for industries with the largest industrial estates in Indonesia
1
to
9
JORR I
10
to
17
JORR II
Laut Jawa
Tanjung Priok
Cengkareng
10
Penjaringan
Banten
Cilincing
11
1
17
Tangerang
(Rorotan)
DKI
9
Kebon
Jakarta
Cakung
Jeruk
2
8
Bekasi
Kunciran
Ulujami
3
Cikunir
16
7
6
Cibitung
5
Veteran
Jatiasih
4
(Pd Pinang)
Taman
Mini
Hankam Raya
(Jatiwarana)
BEST
15
Cinere
Operational
12
13
Contract signed
In construction
Negotiation/tender
Jawa Barat
14
Jagorawi
(Cimanggis)
Source: PT Bekasi Fajar Tbk.
13
Creating trust among our clients
PT Mega Manunggal Property Tbk
Build to Suit
Tenant profile of MMP’s logistic properties as of 30 September 2015
Consumption
Trading
1%
Service
1%
Training Center Bank
1%
0%
Logistic
Consultant
0%
Manufacture
6%
Multi Tenant
Logistic
Logistics
29%
Consumer
58%
Bank
E-commerce
4%
Distributor
0%
E-commerce
Training
Consultant
Manufacturing
14
PT Mega Manunggal Property Tbk
Section 4
Industry
Growing market to support logistic industry
PT Mega Manunggal Property Tbk
ASEAN continues to be the focus for multinational companies to grow and Indonesia is one of the countries prioritized in the region. Demand for
supporting infrastructure including logistic properties is expected to grow along with the increase in investment.
Indonesia becomes main target for business development in
ASEAN
% of respondent that indicate country to be prioritized in their future business
expansion
Track record in the strong growth in the logistic industry in Indonesia
Growth in Indonesia’s logistic industry
USD bn
200
41%
37%
35%
32%
155
160
30%
135
28%
120
21%
18%
18%
80
13%
Source: ASEAN Business Outlook Survey 2015
Brunei
Laos
Tidak ada
Singapura
Kamboja
Filipina
Thailand
Malaysia
Myanmar
Vietnam
Indonesia
7%
40
0
2013E
2014 E
Source: Frost & Sullivan

Frost & Sullivan estimated 14,7% growth in the logistic industry in Indonesia for
2014 helped by growth in service sector and increase in household consumption

Domestic business tends to shift key aspect of supply chain management and
distribution to provider of logistic services, particularly FMCG, electronic and
petrochemical.
15
Indonesia continues to be an attractive target for FDI
PT Mega Manunggal Property Tbk
Competitive wages and large domestic market makes Indonesia to be an attractive target for FDI in ASEAN
Resilient economy growth and large domestic market are expected to boost investment in Indonesia
High growth, large domestic market
250
Indonesia
Population (mn)
200
150
Jepang
Filipina
100
Vietnam
Thailand
50
Low growth, small domestic market
Low growth,Myanmar
small domestic
market
Malaysia
Singapura
Australia
0
0.0%
1.0%
Source: EIU, Euromonitor
2.0%
3.0%
4.0%
5.0%
6.0%
Rising middle class income
% households based on income
level
Low growth, large domestic market
300
7.0%
100%
80%
60%
40%
20%
0%
1990
Rata-rata estimasi pertumbuhan PDB riil 2012-2016F
<5K USD
2000
5K - 10K USD
2010
10K-15K USD
2015
>15K USD
Increase in minimum wages helps boost consumption in Indonesia, while average minimum wages in Indonesia continue to be competitive
compared to Thailand and China
Average monthly wages (USD)
1,400
1,200
882
1,000
800
600
400
623
273
234
740
351
268
697
399
253
450
292
200
0
184
187
1,040 990
183
235
539
325
252
617
357
283
974
692
391
283
1,080 1,130
988 1,010 1,030
1,170
771
1,060
961
862
464 505
386 405 432
280
321
372
400
477

Retail sales increase in 1Q 2014 supported by election, higher minimum
wages in 2013, and good harvest.

Retail sales in Q1 2014 increased 20% from previous year for food and
beverages, household equipment and clothing.

Although there are concerns that increase in minimum wages will reduce
Indonesia’s attractiveness for FDI, average minimum wages in Indonesia
is expected to be more competitive that in Thailand and China.
2007 2008 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F
Indonesia
Thailand
Brazil
China
Source: EIU, International Labour Organisation, IMA Asia
16
Investment support increases in industry property
PT Mega Manunggal Property Tbk
Demand for industrial estate increase along with the growth in FDI and domestic investment. Such has elevated the increase in land prices which
inevitably forces companies to allocate their capital efficiently towards productive assets and let third parties to handle supporting activities including
logistics.
Land price (USD/m2)
7.6
Foreign Direct Investment
4.7
4.9
5.1
4.6
5.9
200
150
3.2
3.8
4.5
4.6
5.6
5.8
5.4
5.0
3.5
4.5
3.4
3.0
3.0
(USD mn)
5.3
250
100
50
0
2013
Bogor
Serang
2014
Tangerang
Rata-rata
2011
2012
2013
2014
% CAGR
(2011-2014)
Bekasi
123
184
215
223
22%
Bogor
107
127
220
174
18%
Tangerang
111
123
126
159
13%
Karawang
83
136
177
185
31%
Serang
78
101
130
133
19%
100
134
174
175
20%
(USD/m2)
Source: Bank Indonesia, Colliers
2012
Bekasi
Karawang
4Q2014
3Q2014
2Q2014
1Q2014
4Q2013
3Q2013
2Q2013
1Q2013
4Q2012
3Q2012
2Q2012
1Q2012
4Q2011
3Q2011
2Q2011
1Q2011
4Q2010
3Q2010
2Q2010
1Q2010
2011
Average
Source: Colliers International
17
Asia logistics, industrial yields and rentals
PT Mega Manunggal Property Tbk
Asia logistics / industrial yields by key centres
25
12%
Yield (%per annum)
Asia logistics / industrial rentals by key markets
12%
10%
10%
20
8%
15
10%
8%
5%
6%
5%
5%
6%
4%
10
3%
4%
5
4%
2%
2%
0%
0
0%
India
China
Yield (%p.a)
Source: Colliers International
Japan
Singapore
Risk - free Rates
Hongkong
0%
HongkongSingapore Tokyo
Delhi
Rental, US$ per sq ft p.a. (LHS)
Shanghai Beijing Guangzhou
Forecast growth, % YoY
Source: Colliers International
Due to the sustained flow of investments into Asia, and the region’s subdued inflationary environment, risk-free rates have consistently fallen. The
logistics and industrial property yield spread compared to these risk-free rates narrowed up to 1Q 2013. However, the spread widened in Japan.
In China, long-term real estate funds have been eyeing opportunities for modern warehousing facilities for long-term growth in both the first and
second-tier cities. Investment yields for quality logistics premises in China currently range from 6 to 8% per annum.
The normal rental rate in China is around US$6-7 per sq. ft. per annum; and in most Chinese cities, they are expected to increase in the order of
3-5% per annum, thanks to the sustained growth of industrial production, cargo throughput volume and local retail sales. Beijing is going to deliver
an exceptional performance, primarily due to the accelerating expansion of its third-party logistics (3PL) companies and e-commerce sector.
18
Asia Logistics / Industrial Rental
PT Mega Manunggal Property Tbk
Capitalization rates for logistic properties in Asia
 The average industrial capitalization rate in
Asia fell to an all-time low of 5.8% in 2Q 2012;
but edged up again to 7.1% in 1Q 2013,
according to statistics provided by RCA.
 The increase in cap rates reflected growing
uncertainty in the traditional warehousing
sector about the sovereign debt problems in
the Eurozone, which had still not been fully
resolved.
 However, strong demand continues for quality
logistics warehouses and distribution facilities,
particularly those supported by seasoned
managers, and the average capitalization
rates have been compressed.
19
Riding along with the growing E-commerce
PT Mega Manunggal Property Tbk
Increasing middle class income has helped E-commerce sectors growing at 42% CAGR 2012-15
(5-6% GDP Scenario)
45
85
195
180
2010
(7% GDP Scenario)
110
135
170
145
2020 E
2030 E
Below Global Consuming Class
2030 E
Global Consuming Class
Source : BPS, Bappenas, UNPP, Mckinsey
Estimated B2C eCommerce sales by country 2013 – 2016 (in USD billion)
2013
2014
2015E
2016E
China
181.6
274.6
358.6
439.7
Japan
118.6
127.1
135.5
143.1
Korea Selatan
18.5
20.2
21.9
23.7
India
16.3
20.7
25.7
30.3
1.8
2.6
3.6
4.9
Indonesia
Source : BPS, Bappenas, UNPP, Mckinsey
20
PT Mega Manunggal Property Tbk
Section 5
Financial Review
Solid revenues growth
PT Mega Manunggal Property Tbk
In the past 2 years, MMP has successfully posted a 51,2% CAGR to Rp141,9bn in 2014 supported by growth in NLA and occupancy rate. As of
1H15, our NLA stood at 163.757m2
Development of NLA and Occupancy Rate
Each asset contribution towards revenues
97%
97%
250,000
100%
94%
CAGR 51,2%
95%
89%
200,000
163,911
120,2
119,5
90%
163,757
141,9
85%
139,811
150,000
80%
118,199
62,1
75%
100,000
70%
65%
50,000
60%
55%
-
2012
2013
Net Leasable Area (m2)
2014
2012
9M15
Unilever
Occupancy Rate
(Rp bn)
2012
2013
2014
9M15
Net Leasable Area (m )
118,199
139,811
163,757
163,911
Unilever Mega DC
Leased area (m2)
105,657
135,311
154,623
159,549
Li & Fung
89%
97%
94%
97%
2
Occupancy Rate (%)
Intirub Business Park
Selayar
Total revenue
2013
2014
Li & Fung
9M15
Intirub Business Park
Selayar
2012
50.6
2013
88.3
2014
82.9
9M15
64,32
-
6.8
16.2
10,20
11.5
24.4
42.8
43.8
-
-
-
1.88
62.1
119.5
141.9
120.2
21
Summary of profit and loss comprehensive
PT Mega Manunggal Property Tbk
Aside from recurring income from leasing its own logistic properties, MMP also has recurring value creation from recognition over increase in fair
value of investment properties. Each investment properties that have been completed will be measured at fair value.
Summary of profit and loss comprehensive
2012
2013
2014
9M14
62.1
9M15
Revenues
62.1
119.5
141.9
101.6
120.2
Operating profit
48.8
105.6
114.3
84.9
91.8
141.9
IDR Bn
(Rp bn)
Component of recurring value creation
119.5
357.5
223.6
Interest expenses
(16.3)
(36.1)
(43.9)
(34.6)
(38.9)
Forex loss - net
(22.0)
(117.7)
(15.2)
(5.9)
(46.5)
Changes in fair value of PII
357.5
222.4
261.1
-
-
Profit before tax
372.3
174.2
309.4
37.7
22.5
(6.3)
(12.2)
(14.2)
(10.2)
(12.0)
313.9
90.5
286.4
19.6
10.5
Income tax
Comprehensive profit and loss
2012
2013
261.1
2014
Increase in fair value of investments properties
101.6
120.2
9M14
9M15
Rental Revenue
Asset yield
1,500.0
20.0%
17.4%
15.4%
1,300.0
Li & Fung
(Rp miliar)
1,100.0
900.0
847.2
160.9
700.0
500.0
300.0
Selayar
44.1
Landbank
424.9
Intirub Business Park
559.7
Total investment properties
Note:
1) Appraised value from KJPP Stefanus Tonny Hardi & Rekan
2,036.8
12.5%
9.9%
495.6
14.9%
18.0%
16.0%
14.0%
12.0%
10.0%
686.5
764.3
(%)
Appraised value of Investment properties per 31 Desember
2014 1
Unilever
18.6%
8.0%
6.0%
4.0%
100.0
2.0%
(100.0)
0.0%
2012
2013
2014
Average outstanding investment property at investment cost
Rental revenue / investment cost
Operating profit / investment cost
22
Summary of financial position
PT Mega Manunggal Property Tbk
Investment properties that is measured in the fair value is the largest component of asset in the summary of financial position of MMP. From
liability side, MMP is currently sourcing its financing from the equity, debt and bank loan. With strong value creation from investment properties,
MMP could achieve conservative leverage with debt to equity ratio of 0.4x at the end of 2014.
Summary of financial position
(Rp bn)
Asset and capital structure
2012
2013
2014
9M15
6.3
6.4
11.3
816,6
88.7
88.9
82.4
893
Investment properties
1,409.2
1,748.6
2,037.2
2,042.3
Non current asset
1,411.5
1,751.1
2,056.1
2.254,8
Total asset
1,500.1
1,840.0
2,138.5
3,147.9
Short term liabilities
465.3
604.4
136.6
198.6
Long term liabilities
329.0
367.8
554.4
503.7
Debt
397.4
562.5
597.4
613.6
Total liabilities
794.3
972.2
691.0
702.2
75.0
75.0
400.0
571.4
Retained earnings
439.1
529.6
816.0
826.3
Total equity
705.8
867.8
1,447.5
2,445.7
Cash and cash
equivalent
Current asset
Paid in capital
23
Summary of financial position
PT Mega Manunggal Property Tbk
Revenues, Rp bn
142
51.3%
119
EBITDA, Rp bn
18%
115
120
52.8%
101
92
85
62
2012
8%
106
49
2013
2014
9M14
9M15
2012
Equity, Rp bn
2013
2014
9M14
9M15
Capital expenditure, Rp bn
1,035
2,442
435
283
1.448
706
868
233
895
5
2012
2013
2014
9M14
9M15
2012
2013
2014
9M15
2015F
24
Key performance matrix
PT Mega Manunggal Property Tbk
2012
2013
2014
%CAGR
9M14
9M15
%YoY
Built to suit
90,288
111,900
111,900
11%
111,900
111,900
0%
Multi tenants
27,911
27,911
51,857
36%
46,237
51,857
12%
118,199
139,811
163,757
18%
158,137
163,757
4%
100%
100%
98%
-
98%
97%
-
55%
84%
87%
-
87%
98%
-
Average occupancy rate, %
89%
97%
94%
-
95%
97%
-
Average remaining lease term, years
10.0
7.5
6.5
-
7.0
6.0
-
Rental built to suit
50,594
94,931
99,160
40%
68,469
76,397
12%
Rental multi tenants
11,472
24,555
42,758
93%
33,098
43,797
32%
Total revenues, Rp bn
62,066
119,486
141,918
51%
101,567
120,194
18%
48,931
104,114
84,574
-
64,717
59,765
-
-91
1,488
29,675
-
20,180
32,077
-
48,840
105,602
114,249
53%
84,898
91,843
8%
EBIT margin, %
79%
88%
81%
-
84%
76%
EBITDA, Rp bn
49,296
106,268
115,063
53%
85,466
92,445
79%
89%
81%
-
84%
77%
Interest expense, Rp bn
-16,049
-35,991
-42,818
63%
34,647
38,886
12%
Forex loss nett, Rp bn
-21,987
-117,712
-15,201
-17%
5,872
46,465
691%
Profit before tax, Rp bn
372,338
174,187
309,395
-9%
37,736
22,446
-41%
Net Leasable Area, m2
Operational metric
Total, m2
Occupancy rate, %
Built to suit
Multi tenants
Revenue, Rp bn
Revenue by segment
Operating Profit (EBIT), Rp bn
Built to suit
Multi tenants
Total EBIT, Rp bn
Profitability
% margin
8%
-
25
Revenues breakdown
PT Mega Manunggal Property Tbk
Revenues breakdown
Net leasable composition area
As of Sep 2015
Multi Tenants
32%
Built to suit
68%
Built to suit warehouses account for two third of total revenues
Revenue
IDR Bn
141.918
119.486
24.44
6.75
62.066
120.19
42.76
43.80
16.21
10.20
11.47
-
88.29
82.95
2013
2014
64.32
50.59
2012
Unilever
Built to suit
(% of total revenue)
82%
Li & Fung
81%
Intirub Business Park
72%
9M15
Selayar
63%
26
PT Mega Manunggal Property Tbk
Section 6
Growth Strategy
Our growth strategies
PT Mega Manunggal Property Tbk
1
Constructing new logistics properties in strategic location
2
Focus in built to suit property logistic
3
Continue to improve operating efficiency
27
1
Constructing logistic properties with international standard
PT Mega Manunggal Property Tbk
Warehouse
Site identified
Land acquired
(downpayment)
Construction permits
secured
Estimate opening
Site 1
√
√
-
4Q2016-Q12017
Site 2
√
√
-
N/A
Site 3
√
√
-
N/A
Site 4
√
√
-
N/A
Site 5
√
-
-
N/A
Site 6
√
-
-
N/A
Development criteria
 Strategic location
Strategic business
 Penetration outside greater Jakarta to other big cities in
Indonesia such as Surabaya, Kalimantan etc.
 Target yield 9 – 11%
 Has secured tenants
 Targeting Top 5 Companies in different sectors :
(Consumer, Logistic, Manufactures, E-commerce, Trading)
 Payback periods 8 years
28
2
Focus in built to suit warehouse
PT Mega Manunggal Property Tbk
Facts
 MMP has track record complete complex construction
 Our capabilities to build high specification warehouses:
- Superflat floors
- Double decker warehouse
 Increase Profitability
 Increase Recuring Revenue
 Results in higher margin since majority of
the expenses bear by tenant
 Increase our brand name
High demand from manufacturers company,
eCommerce to built warehouse for their company
Revenues breakdown
 Investing in human capital (marketing team, which shall ensure that our growth strategy will continue to be in placed)
 Improve our building management service
 Offer our potential clients with value engineering ( offer alternative design & construction to improve client’s optimization and
efficiency )
 Develop innovative & high quality ( ex: Green Building Concept)
 Improve relationship with existing tenants
29
3
Continue to improve operating efficiency
PT Mega Manunggal Property Tbk
Integrated IT platform
Reducing cost
 Investing in operating system to release some of the
operational bottleneck and to improve our productivity
 Outsourcing to support our services including cleaning service,
parking etc.
 Implement a unified database for storage of tenant
records and other information to reduce costs and
improve efficiency
 Standardize warehouse specifications to shorten the building
process
 Benchmarking our construction cost with other industry
players
Management focus
Economies of scale
 Effective tender process to determine the most effective
contractors
 Increase scale of NLA Warehouse will allow us to achieve
economies of scale
 Quarterly review of budgeting to ensure that costs are
aligned with the proposed budget
 Gain greater bargaining power in procurement process
 Invest in marketing team
 Invest in high quality people to manage estates and to
increase productivity
30
PT Mega Manunggal Property Tbk
Section 7
Investment Consideration
Investment consideration
PT Mega Manunggal Property Tbk
1
First mover in provider of modern logistic property
2
Provider of high quality logistic property
3
Portfolio of assets that provide stable and recurring cash flow
4
Proven track record in land acquisition and delivery
5
Strategically located logistic property in Indonesia
6
Strong exposure to consumer sector that has high potential growth
31
PT Mega Manunggal Property Tbk
Section 6
Appendix 1
Unaudited balance sheet
PT Mega Manunggal Property Tbk
Year to Dec 31, Rp mn
2012
2013
2014
Cash and Equivalents
6,309
6,368
11,311
9M15
% YoY
28,973
816,595
2,718.5%
381
10,457
13,714
13,733
16,890
23.0%
81,964
72,054
57,381
68,366
59,602
-12.8%
Property & equipment
1,262
1,236
2,107
1,267
1,953
54.1%
Investment properties
1,409,229
1,748,687
2,037,233
1,752,416
2,042,285
16.5%
962
1,208
16,756
1.907
210,581
1,0661.1%
1,500,107
1,840,009
2,138,502
1,866,663
3,147,905
68.6%
178,435
42,240
26,574
23,700
6,047
-74.5%
Unearned revenue
70,345
23,932
23,528
48,753
58,373
19.7%
Bank loans - short term
70,381
201,333
35,636
83,888
126,294
50.6%
Other current liabilities
146,123
336,898
50,859
276,399
7,915
-97.1%
Bank loan
325,859
360,440
541,288
524,503
486,504
-7.2%
-
3,665
7,845
7,523
10,879
44.6%
3,149
3,700
5,236
6,517
6,225
-4.5%
Total Liabilities
794,291
972,208
690,966
971,282
702,238
-27.7%
Minority interest
-
-
2,673
0
2,813
-
705,815
867,801
1,444,863
895,380
2,442,854
172.8%
Trade receivables
Other current assets
Other non-current assets
Total assets
Trade payable
Customer deposits
Other long term liabilities
Equity
9M14
32
Unaudited profit and loss
PT Mega Manunggal Property Tbk
Year to Dec 31, Rp mn
9M14
9M15
141,918
101,567
120,194
18.3%
5,940
13,084
7,796
11,865
52.2%
58,180
113,546
128,834
93,771
108,329
15.5%
9,340
7,944
14,584
8,873
16,486
85.8%
Operating profit
48,840
105,602
114,251
84,898
91,843
8.2%
EBITDA
49,296
106,268
115,063
85,466
92,445
8.2%
Net interest income (expense)
-16,049
-35,991
-42,818
(33,820)
(23,291)
-31.1%
Increase in fair value Invt Prop
357,511
222,424
261,127
-
-
-
Other items
-17,964
-117,848
-23,165
(13,343)
(46,105)
245.5%
Profit before tax
372,338
174,187
309,395
37,736
22,446
-40.5%
-6,298
-12,201
-14,192
(10,157)
(12,019)
18.3%
Proforma adjustment
-52,110
-71,454
-8,482
(7,945)
-
-100.0%
Net income
313,930
90,532
286,722
19,634
10,427
-46.9%
Core income
-21,593
-14,180
40,796
25,506
56,754
122.5%
Revenue
Cost of revenue
Gross profit
G&A
Tax
2012
2013
2014
62,066
119,486
3,886
% YoY
33
Unaudited cashflow
PT Mega Manunggal Property Tbk
Rp mn
Cash flow from operating activities
Cash Receipt from Customer
2014
9M15
%Change
154,744
170,411
10%
1,046
15,595
1,392%
Cash Paid for Operating Expenses and Employees
(12,981)
(15,052)
16%
Payment to Supplier and Others
(14,667)
(29,103)
90%
Tax paid
(13,208)
(14,447)
9%
Interest paid
(44,620)
(38.186)
-14%
70,315
89,219
29%
56,776
(28,429)
-150%
Acquisition of Property and Equipment
(93,660)
(302)
-100%
Advance for Purchase of property & equipment
(14,850)
(763)
Interest Received
Net cash provided by operating activities
Cash flow from investing activities
Acquisition of Investment Properties
Advances for purchases of land
-
(183,250)
Acquisition of shares of subsidiary
(40,469)
-
Net Cash Used in Investing Activities
(92,202)
(214,104)
131%
161,689
9,608
-94%
(218,567)
(37,626)
-83%
235,210
14,957
-94%
(202,541)
(46,252)
-77%
(1,188)
(538)
2
-55%
Receipt from Paid in Capital
55,000
987,702
1,696%
Net Cash provided by Financing Activities
29,602
927,853
3,034%
7,715
804,328
10,324%
(2,772)
956
-134%
6,368
11,311
78%
11,311
816,595
7,119%
1,134%
Cash flow from financing activities
Loan Receipts from Related Parties
Payment to Related Parties
Loan Receipts from Bank
Payment to Bank Loan
Payment of consumer Financing Liabilities
Paid-up capital stock non controlling
Changes in cash and cash equivalent
Effect of forex
Beginning balance
Ending balance
34
PT Mega Manunggal Property Tbk
End of presentation
Thank you